Progress report on the implementation of the Climate Change Action Plan African Development Bank Group

Transcription

1 Progress report on the implementation of the Climate Change Action Plan African Development Bank Group Quality Assurance and Results Department Compliance and Safeguards Division

2

3 Progress report on the implementation of the Climate Change Action Plan African Development Bank Group Quality Assurance and Results Department Compliance and Safeguards Division

4 ACKNOWLEDGMENTS This Report was prepared by a core team led by Balgis Osman-Elasha (Task Team Leader), Olufunso Somorin, Musole Mwila Musumali and Uzoamaka Nwamarah; under the close supervision and guidance of Anthony Nyong, Manager, ORQR3. Significant contributions and peer reviews were provided by Monojeet Pal, Caroline Jehu-Appiah, Hikaru Shoji, Mafalda Duarte, Alexis Rwabizambuga, Ken Johm, Jacque Moulot, Akissa Bahri, Yogesh Vyas, and Chi Lawerence Tawah. Additional comments and support were received from James Opio-Omoding, Clotilde Louisette Mollo, Kisa Mfalila, Florence Richard-Quintanilha, Ahmed Shiekh Javed, Aymed Ali and Frank Sperling. The report draws on the contributions of task managers in various Bank departments. The team is grateful to the many people in the Bank who provided inputs, guidance and advice during the assessment and drafting. We acknowledge the support of the members of the CCCC, especially those of Mr. Aly Abou-Sabaa, Vice President, OSVP, and Chair of the CCCC; Simon Mizrahi, Director, ORQR; Hela Cheikhrouhou, Director, ONEC; and Sering Jallow, Director, OWAS African Development Bank Group All rights reserved. Published June Printed in Tunisia. African Development Bank Group Progress report on the implementation of the Climate Change Action Plan Note: In this report, $ refers to US dollars. 1 UA = $1.53 African Development Bank Group Temporary Relocation Agency Angle de l Avenue du Ghana et des rues Pierre de Coubertin et Hédi Nouira B.P Tunis - Belvédère

5 Progress report on the implementation of the Climate Change Action Plan Content Abbreviations Executive summary v vi Introduction 1 Background 1 Objective and scope 1 Institutional framework for the Implementation of the CCAP 2 Implementation of the pillars of the CCAP 3 Overview 3 Adaptation: climate-resilient development and building adaptive capacity 5 Low-carbon development 6 Climate Financing Platform 8 Cross-cutting issues 10 Challenges and lessons learned 15 Challenges 15 Lessons learned 15 Conclusion and recommendations 17 Conclusion 17 Recommendations 17

6 Tables Content Table 1 Current investments compared with planned targets 4 Table 2 Selected projects in renewable energy sources 7 Figures Figure 1 Bank s investments and CCAP pillars 3 Figure 2 Distribution of projects across sectors, by project value 4 Figure 3 Distribution of investments within the adaptation and LCD pillars 4 Figure 4 Distribution of climate financial instruments and sources.. 9 Boxes Box 1 Africa Water Facility promoting access to water in rural areas of Ethiopia 6 Box 2 Menengai Geothermal Development Project, Kenya on 7 Box 3 Regional infrastructure and LCD in East Africa: example of Ethiopia-Kenya power interconnection 7 Box 4 Strengthening Africa s voice in global negotiations on climate change and development 12 Annexes Annex 1 Glossary 20 Annex 2 External financial resources appproved and to-be channeled through the Bank 22 Annex 3 Bank-hosted initiatives: commitments and amounts pledged by donors 23 Annex 4 Summary: cross-cutting issues 24

7 Abbreviations v ACSP ADB ADF CBFF CCAP CCCC CDSF CIF CTF CSP CSS EADI EDRE FIP GEF GHG LCD M&E NAMA OITC ONEC OPSM ORQR ORRU OSAN OWAS PPCR RISP REDD+ RMC RWSSI SEFA SREP TYS UNFCCC Africa Carbon Support Programme African Development Bank African Development Fund congo Basin Forest Fund climate Change Action Plan climate Change Coordination Committee climate for Development in Africa Special Fund climate Investment Funds clean Technology Fund country Strategy Paper climate Safeguard System African Development Institute Development Research Department forest Investment Program Global Environmental Facility Greenhouse gas low Carbon Development monitoring and Evaluation nationally Appropriate Mitigation Actions transport and ICT Department energy, Environment and Climate Change Department private Sector Department Quality Assurance and Results Department partnership and Cooperation Department Agriculture and Agro-industry Department Water and Sanitation Department pilot Program for Climate Resilience regional Integration Strategy Paper Reducing Emissions from Deforestation and Forest Degradation regional Member Country Rural Water Supply and Sanitation Initiative Sustainable Energy Fund for Africa Scaling Up Renewable Energy Program in Low Income Countries ten Year Strategy United Nations Framework Convention on Climate Change

8 vi Progress report on the implementation of the Climate Change Action Plan Executive summary The Climate Change Action Plan (CCAP) of the African Development Bank (AfDB, or Bank) sets out the path towards climateresilient, low-carbon development for Africa and provides guidance for improved access to climate finance. It calls for the establishment of an enabling environment for addressing climate change, policy and institutional reforms and capacity development to ensure effective implementation of the adaptation and mitigation actions. The cross-sectoral nature of the climate change challenge requires a high level of commitment by different departments within the Bank and by national governments, to effectively address and integrate the associated risks into national development planning processes. The Bank intends to invest about UA 6.4 billion (USD 9.6 billion) in the implementation of the CCAP over the 5-year period The various projects and activities identified under the CCAP are designed and implemented by sector departments ONEC, OSAN, OSHD, OWAS, OITC and OPSM in cooperation with the service departments ERCU, EADI, EDRE and ORRU, which provide support on capacity building and resource mobilisation. ORQR is responsible for the corporate-level monitoring and evaluation of and reporting on the relevant project activities and programmes. ONRI and the Regional Departments lead the prioritisation of regional and national projects, and ensure the strategic alignment of the Bank s Regional Integration Strategy Papers and Country Strategy Papers with the CCAP. All these activities are guided and coordinated under the strategic umbrella of the Climate Change Coordinating Committee. The projects and activities under implementation cut across the core CCAP pillars of adaptation and low-carbon development. For the adaptation (climate-resilience) pillar, projects focus on improving agricultural productivity and food security, enhancing rural incomes, improving the supply of water resources and irrigation systems, improving forest management and use, and mobilising the development of clean water sources. For the low-carbon development pillar, the focus is on sustainable transport, clean energy and energy efficiency, and sustainable land use systems. In supporting clean energy development in Africa, the Bank currently has projects covering all renewable energy sources: hydro, solar, geothermal, wind and bioenergy power. The total investment for all the projects analyzed in this report amounts to UA billion (USD billion), of which the Bank s contribution, mainly from ADB and ADF sources, equals UA 2.86 billion (USD 4.30 billion). The finding is important for two reasons. First, the Bank s contribution, amounting to about onequarter (24 percent) of the total investment, indicates its leveraging power in attracting external resources. Second, the Bank s climaterelated investment from 2011 to 2012 already equals about 45 percent of the targeted total budget for the five-year Action Plan, indicating investments would likely surpass targets. In addition to providing its own resources through the ADB and ADF windows, the Bank has increased its access to and use of resources from global environmental and climate financing instruments such as the Global Environment Facility (GEF) and the Climate Investment Funds (CIFs). Furthermore, the Bank hosts and manages several climate-change-related financing instruments: the Congo Basin Forest Fund, African Water Facility, Climate for Development in Africa Special Fund, Rural Water Supply and Sanitation Initiative Trust fund, and Sustainable Energy Fund for Africa. To effectively respond to the need to climate-proof development in Africa, the Bank has developed a Climate Safeguard System to systematically assess the risk of climate change to projects and key economic sectors, and provide options for adaptation. The system is now being piloted for

9 vii eventual application to all Bank-funded projects; it is expected that by the end of 2013 around 75% of Bank-funded projects will have been screened. Additionally, the Bank is working to create the enabling environment for successful implementation of the CCAP by developing and executing a coherent package of relevant actions: Creating awareness through workshops and the generation and dissemination of technical and scientific knowledge; Building capacity within the Bank and in the RMCs; Developing methods and tools to assist in screening risks and identifying options for climate-proofing projects; Maximising the flows of climate finance and enhancing African countries access to them; Creating a monitoring and evaluation system for tracking progress and allowing results-based measurement of impacts; Forging partnerships with regional and international development partners for better coordinated work and greater development impact. Working with partners, the Bank has published several technical papers that have improved the understanding of the impacts of and risks and vulnerability to climate change in Africa. These reports have provided crucial information on the cost of adaptation, finance options and tools, and the preparatory actions necessary to improve the accessibility to climate finance. The ultimate objective is to help RMCs build climate resilience into their development planning and strategies as well as lay the foundation for low-carbon development. The report makes crucial recommendations on how the Bank can improve its ongoing implementation of the CCAP. Among other things, it indicates that the Bank s capacity to respond to climate change in Africa will improve if task managers are able to understand and act on the lessons that surface from practical implementation of climate change actions. Recognising the challenge of mobilising sufficient resources to finance the additional cost of climate-proofing projects and making low-carbon investments, the Bank is working to make effective use of existing bilateral and multilateral funding as well as new international climate finance mechanisms such as the Green Climate Fund (when operational). Moreover, it is supporting RMCs in accessing these funds and addressing their immediate needs. Nevertheless, more work remains to be done to attract international support and private sector investment to support the transition to a low-carbon, climate-resilient development pathway n Executive summary

10 viii Progress report on the implementation of the Climate Change Action Plan

11 1 Introduction Background Climate change is one of the greatest threats to Africa s sustainable development. Consequently, it must be integrated as a core priority in policy and project design and implementation. The African Development Bank (AfDB or the Bank) bases its approach to addressing climate change on its core goal of supporting sustainable economic development and poverty reduction in Africa. In October 2012, the Bank introduced its Climate Change Action Plan (CCAP), covering 2011 to 2015 period. Recognising the Bank s leading role in supporting sustainable development in Africa, the CCAP seeks to draw on the institution s strong operational capacity to position the Bank as a key operator in climate change issues on the continent. The CCAP is built on three pillars: Adaptation 1 (climate-resilient development and building adaptive capacity); Low-carbon development (LCD); and The establishment of a climate-change financing platform. The CCAP also highlights cross-cutting issues such as capacity building, knowledge generation and management, institutional and policy reforms, and networking and partnerships. Objective and scope This report seeks to show the Bank s progress in implementing the objectives of the CCAP through climate-change-related programmes and projects. The report considers two categories of projects and activities in this assessment. First, it looks at ongoing projects approved before 2011 that are contributing to the objectives of the CCAP with a number of them being financed by the climate-related facilities. Second, it looks at projects that were identified to meet the objectives of the CCAP i.e. projects that were drawn from the Bank s pipeline and were developed in consultation with, and endorsed by, all the relevant Bank departments, between 2011 and The assessment considered projects that were deemed to contribute to adaptation (climate-proofing) and LCD (mitigation) those that are explicitly labeled climate adaptation/ LCD and others that might be expected to contribute to both adaptation and LCD. Task managers selected the projects for review, with guidance from CCAP Focal Points in relevant departments including OSAN, ONEC, OPSM, OITC and OWAS, and provided their inputs in line with the template provided. The report team then conducted individual interviews and group meetings to confirm and cross-check the information. The team systematically reviewed the project appraisal reports (PARs) of the selected projects for further information on their contributions to the CCAP pillars and their financing sources. The team drew on the typologies of adaptation and mitigation activities as defined in the Joint MDB Report on Tracking Climate Finance, to identify projects contribution to the CCAP pillars, and they also used the Joint MDB Report to estimate the total budget approved for adaptation and LCD. It is important to note that because the CCAP is being implemented without clear-cut baselines, Introduction 1 Annex 1 provides a glossary of terms used in this paper and in climate change discussions more broadly.

12 2 Progress report on the implementation of the Climate Change Action Plan it is difficult to assess progress against targets. In addition, the fact that there are many internal and external actors in the regional member countries (RMCs) who are also contributing to results makes attribution difficult and underlines the importance of forming strategic partnerships with regional and international development actors. This first section of the report gives a brief background about the CCAP and describes the objectives, scope and methodology of the report. The second section describes the activities undertaken to implement the CCAP. The third section presents challenges and lessons learned. The fourth section concludes and also provides a number of recommendations. Institutional framework for the implementation of the CCAP The Bank has integrated climate change-related activities into its operations by adopting the CCAP, creating a coordination platform, and assigning responsibility for implementation to a range of units. The institutional set-up for the CCAP includes the active involvement of the sector departments ONEC, OSAN, OSHD, OWAS, ONRI, OITC and OPSM in leading project design and implementation, with support from ERCU, EADI, EDRE, ORMU and ORRU on capacity building and resource mobilisation. Particular responsibilities are as follows: The Climate Change Coordinating Committee (CCCC) ensures that climate change activities are planned and implemented in a coordinated manner and provides Bank-wide leadership and guidance on climate change issues; ONEC manages the majority of the instruments that form the Financing Platform (a pillar of the CCAP). It also provides technical leadership for complementary analytical work such as the Joint MDB Methodology to track climate change financing and the Bank s multi-sectoral work on transitioning to green growth including developing a comprehensive staff guidance document; ORMU and ORRU play important roles in mobilizing both bilateral and multilateral resources, analytical and advisory services, and technical assistance; ONRI and the Regional Departments lead the prioritisation of regional and national projects and ensure that the Bank s Regional Integration Strategy Papers (RISPs) and Country Strategy Papers (CSPs) are strategically aligned with the CCAP; OSAN and ONEC support the work on mainstreaming climate change in operations; and ORQR is responsible for the corporate-level monitoring and evaluation of and reporting on, the relevant project activities and programmes as well as capacity building. Setting up cross-departmental working groups and networks has facilitated the sharing of experiences and coordinating efforts towards achieving specific goals. For example, the working group on green growth has achieved the implementation of a first phase of internal capacity building, contributed to the articulation of the Ten-Year Corporate Strategy, and provided advisory services to RMCs (upon request) to support the drafting of their green growth strategies and road maps. In addition, ad hoc committees and task forces are regularly set up to manage specific tasks and emerging issues such as Meetings of the Conference of Parties (CoPs) to the United National Framework Convention on Climate Change (UNFCCC), the CCAP Monitoring and Evaluation Framework, and the Climate for Development in Africa Special Fund (CDSF) n

13 3 Implementation of the pillars of the CCAP Overview The design and implementation of projects under the CCAP began before the Action Plan itself was approved. Therefore, a number of projects are already being implemented as part of the Action Plan. They address four major policy goals that are consistent with the strategic vision and guiding principles of the CCAP. These policy goals are intended to strengthen existing efforts, utilise a range of resources and capabilities, and support developing partnerships with national, regional and international communities to achieve desired development objectives. They are: Mainstreaming climate change in all Bank investments and operations; Fostering climate-resilient and low-carbon development in Africa; Supporting RMC efforts to mobilise financial resources and increase access to international climate finance; and Promoting cross-cutting issues such as knowledge generation and management, capacity development, and institutional and policy reforms. The total investment of the climate-changerelated projects ( ) being implemented by different departments amounts to UA billion (USD billion). Of this amount, the Bank s contribution, including loans and grants from ADB and ADF sources, equals UA 2.86 billion (USD 4.30 billion) about one-quarter of the total. This is an indication of the Bank s leveraging power in attracting external resources towards implementation of the CCAP. Over , the Bank intends to invest UA 6.4 billion towards the CCAP s implementation; this analysis revealed that its current contribution has already reached nearly half (45%) of the target. The projects under implementation contribute to the core pillars of adaptation and LCD. For the adaptation (climate-resilience) pillar, the projects focus on improving agricultural productivity and sustainability and food security, enhancing rural incomes, building community engagement and scaling up knowledge in sustainable forest management, improving the supply of water resources and irrigation systems and mobilising the development of clean water sources. The Bank s investments for this pillar equal UA million (USD million). For the LCD pillar, the focus is on sustainable transport, clean energy and energy efficiency, and sustainable land use systems. The total investment for the projects under this pillar equals UA billion (USD billion) (see Figure 1). 1 Figure 1 Bank s investments and CCAP pillars Costs (UA million) LCD Adaptation However, there is recognition that certain projects, especially those related to sustainable land and water resources management, often contribute Implementation of the pillars of the CCAP 1 only the Bank s contribution for components of projects relevant for the CCAP pillars were considered in the estimates of costs. This could be up to 100% of the total cost.

14 4 Progress report on the implementation of the Climate Change Action Plan to both adaptation and mitigation outcomes. For instance, reducing emissions from deforestation and forest degradation (REDD+) and sustainable forest management projects under the Congo Basin Forest Fund (CBFF) programme can contribute to climate change mitigation (LCD) and enhancement of the adaptive capacity of rural people who depend on forests for their livelihoods. Many CCAP projects are more tilted towards infrastructure development, given the urgent need to address Africa s low infrastructure development and adaptation deficit. For example, clean energy, which is essentially low-carbon development, represents 54% of the total Bank s investment, followed by water, transport and agriculture & forestry (see Figure 2). Figure 2 Distribution of projects across sectors, by project value Agriculture & forestry 12% Water 18% Transport 16% Energy 54% The distribution of the investments across the core sectors energy, transport, water and agriculture/forestry is shown in Figure 3. As would be expected, energy and transport projects contribute more to LCD outcomes than to adaptation (climate-resilience) outcomes, and the reverse is true of the water and agriculture sectors. The differences between the two pillars Figure 3 Distribution of investments between the adaptation and LCD pillars Costs (UA million) Energy Transport Water Agriculture & forestry Adaptation finance LCD finance (Figures 1-3) are not necessarily explained by differences in number of projects, but rather by the high investment of most energy projects. In tracking the progress of CCAP implementation, overall and by sectors, it is useful to compare the current investment against the investment targets set out in the Action Plan at approval (see Table 1). Investment in the water sector is close to the planned target, while investment in the energy sector far exceeds its target perhaps because of the availability of external funds for climatefriendly energy projects, especially the Climate Investment Funds 2. However, investment in the transport, agriculture and other sectors is lagging behind the planned targets. These sectors which are particularly relevant to the Action Plan s adaptation pillar will need to be strengthened as CCAP implementation progresses. Resiliencerelated work in agriculture, water and forests funded through the CIF provide a strong example of effective application of the Bank s investment for adaptation in these sectors. Table 1 Current investments compared with planned targets Sectors Target investment plan ( ) Current Bank investment ( ) UA billions % UA billions % Energy Transport Agriculture Water Others Total including Clean Technology Fund (CTF) and Scaling Up Renewable Energy Program in Low Income Countries (SREP).

15 5 The implementation of the CCAP, as earlier alluded to, also involves a number of non-operational activities. To facilitate the mainstreaming process at the country programming level, in 2012 the Bank developed a Guidance Document for Mainstreaming Climate Change in the Bank s Country Strategy Papers (CSPs) and Regional Integration Strategy Papers (RISPs). This document provides climate change experts in the country/regional teams with recommendations and guidance to ensure that, as the Bank engages in dialogue with governments on climate change issues, climate risks are taken into account in the design of strategy papers. It discusses both methodological steps and best practices. Its use is expected to enable country/regional teams to design improved climate-resilient strategies that lead to more sustainable investments. During the pilot period of , climate change was mainstreamed into the strategy papers of 16 countries 3. For an extended pilot period in 2013, the guidance document will be applied in the preparation of CSPs for an additional five countries: Cape Verde, Kenya, Liberia, Mauritius, and Sierra Leone. Adaptation: climate-resilient development and building adaptive capacity Adaptation means both coping with the negative impacts of climate change and embracing the opportunities that may arise. This pillar involves actions to climate-proof investments that is, to reduce the exposure and sensitivity of development interventions and to build the resilience of human and natural systems to climate impacts. In building resilience, the focus is on improving the adaptive capacity of local people, particularly those in the least-developed countries, who are particularly vulnerable to the adverse impacts of climate change. In addition to adaptation projects by sector departments such as OSAN and OWAS, the Bank and RMCs are working to build adaptive capacity and improve resilience to climate risks through efforts designed to: (i) improve the understanding of climate science and impacts through information development and dissemination; (ii) inform decision-making processes; (iii) mainstream climate change considerations into policies and strategies; and (iv) strengthen technical knowledge and skills on adaptation. Mainstreaming and building the resilience of Bank projects Mainstreaming climate change means that the Bank should address climate change concerns in all its policies and actions. It also means that national governments should include measures to address climate change including both adaptation and LCD in ongoing and new development policies, strategies, plans, and actions. To ensure the sustainability and resilience of the Bank s investments, adaptation should be seen as an integral part of all Bank projects and programmes. Building the resilience of the Bank s investments entails climate-proofing the regional and national physical infrastructure, such as the road network, to adapt to changing climatic conditions and extreme weather events. An increased understanding of the risks to and vulnerabilities of the Bank s investments and operations led the Bank to develop a tool the Climate Safeguard System (CSS) to assess vulnerabilities, screen risks and identify adaptation options. The CSS is now being piloted for eventual application to all Bankfunded projects; it is expected that by the end of 2013 around 75% of Bank-funded projects will have been screened. Sustainable land use and integrated water resources management The Bank recognises that, because Africa is highly dependent on natural resources, climate change could have serious impacts on agricultural production and food security in many African countries. Extreme droughts, floods and waterrelated disaster events are now more frequent on the continent. The Bank is therefore working to build adaptive capacity and reduce vulnerability, particularly for the people who depend most on natural resources for their livelihoods. Implementation of the pillars of the CCAP Burundi, Comoros, Ghana, Madagascar, Mozambique, São Tomé and Principe, Tunisia and Zambia; Central African Republic, Congo, Democratic Republic of Congo, Gambia, Malawi, Morocco, Nigeria and South Africa.

16 6 Progress report on the implementation of the Climate Change Action Plan The CCAP portfolio includes projects that support increasing resilience in agriculture to enhance food security. Achieving these objectives includes: maintaining sustainable levels of productivity; improving irrigation systems and enhancing rural incomes; and managing water resources sustainably, including developing clean water sources and providing support to country-driven transboundary programs. The Bank is supporting RMCs efforts in building resilience against climate-induced disasters through interventions such as multipurpose dam construction or rehabilitation, urban flood management projects, drought resilience programs and studies. Box 1 presents a project case of how improved access to water contributes local adaptive capacity in rural Ethiopia. Box 1 African Water Facility promoting access to water in rural areas in Ethiopia Despite concerted efforts by the Government of Ethiopia to increase water supply in the country, over 50% of the rural population still lack access to stable water less vulnerable to climate variability. This is in part due to the fact that over 83% of the population has no access to the electric grid to power mechanized water pumps and because of the high cost of fuel powered ones. The AWF offered a 2 million grant to the Government to promote and pilot the use of solar and wind energy for water pumping in rural areas, and to initiate the development of a long term investment in these technologies under the Universal Access Programme, where they are most appropriate and suitable. Studies on solar and wind energy use for rural water supply in Ethiopia are on-going. This project is expected to help ensure an increased and sustained supply of water at lower financial, economic, environmental and social costs than with fossil fuel powered pumping systems. Expected results: Increased demand for solar/wind technologies from end-users and other stakeholders with 130,000 people directly benefiting from access to water under the pilot schemes; Water sector specialists systematically including solar and wind technological options among those to be considered; Local private sector supporting the supply and after sale service of solar and wind pumping equipment, including supply of spare parts and maintenance. Low-Carbon Development (LCD) The strategic focus of the CCAP s LCD pillar is to follow low-emission trajectories as the Bank pursues economic and social development in Africa. The Bank recognises that although Africa accounts for only about 4% of global greenhouse gas (GHG) emissions, LCD offers enormous opportunities to achieve economic development and poverty reduction goals without compromising environmental sustainability. The progress achieved so far under the LCD pillar is largely driven by sustainable climate-mitigation policies and infrastructure projects, especially in the energy, transport, forestry and water sectors. The LCD pillar contains action areas that are aligned with the Bank s policies and strategies. Increasing investments in clean energy and energy efficiency While the CCAP recognises that socioeconomic development in Africa will require improved access to energy, it still aims to encourage reduced energy use in achieving the desired goal. A number of projects implemented under the LCD pillar either support clean energy or increase energy efficiency through use of modern technologies. Additionally, the Bank has delivered an Energy Sector Policy that emphasises the importance of renewable energy sources hydropower, bioenergy, wind, solar and geothermal sources in increasing the continent s energy access and security. In working to promote clean energy, the Bank is implementing projects that support all these renewable energy sources a positive outcome for CCAP implementation. For example, the Bank is implementing a geothermal project in Kenya (see Box 2 for details). An example of an energy efficiency project is the Takoradi II power project in Ghana, which aims at expanding and upgrading an existing plant from a 220 MW single cycle to a 330 MW combined cycle, thus increasing efficiency and

17 7 Box 2 Menengai Geothermal Development Project, Kenya In Kenya where over 80% of the population does not have access to power and where the geothermal potential is one of the greatest in the world, the Menengai steamfield development project, and in particular the first phase, will leverage some of this potential to: produce steam sufficient for 400 MW power that will be generated by the private sector using an Independent Power Producer (IPP) or a Public Private Partnership (PPP) model and thereby provide clean base load energy for 500,000 households and 300,000 small businesses; avoid 2 million tons of CO 2 emissions per annum; Increase Kenya s installed generation capacity by 20% and increase energy security by increasing the contribution of geothermal in the energy mix. The Bank has led the development of the project since 2010, which included assisting Kenya s Geothermal Development Corporation to build a bankable financial model for the project, and catalysing financing from other DFIs and access to a grant from the Scaling-up Renewable Energy Programme (one of the CIF). The Bank s intervention helps address the drilling risk that the private sector is hesitant to assume and lays the ground for private sector involvement in power generation. Accordingly, the project is recognized as an important step in the development of East Africa s significant geothermal potential. reducing GHG emissions. The implementation of renewable energy projects has promoted low carbon development by contributing to emission reductions in many project countries (see Table 2 for examples of such projects implemented under the CCAP). More specifically, Box 3 presents a case of how a power interconnection project in East Africa contributes to regional integration and low carbon development outcomes in Ethiopia and Kenya. Table 2 Selected projects in renewable energy sources Project Country Renewable energy source Addax Bioenergy Project Sierra Leone Bioenergy Menengai Geothermal Project Kenya Geothermal Cabeolica Wind Power Project Cape Verde Wind Lom-Pangar Hydroelectric Project Cameroon Hydropower Ourzazate Solar Power Station Morocco Solar One Wind Energy Project Morocco Wind KivuWatt Project Rwanda Bioenergy Box 3 Regional Infrastructure and LCD in East Africa: example of Ethiopia-Kenya power interconnection The financing of the Ethiopia- Kenya Power Interconnection contributes to Low Carbon Development Eastern Africa, in allowing the provision of substantial Hydropower generated in Ethiopia to neighboring countries, through regional energy trade of an estimated 12,000 GWh by The project involves the construction of an electricity highway between Ethiopia and Kenya, consisting of about 1,068 km of High Voltage Direct Current at 500 kv, with power transfer capacity of up to 2,000 MW. The integration of the power systems of Ethiopia and Kenya will enable in the mid-term export of the large hydropower production in Ethiopia throughout the region and link the power grid in the East to that of Central Africa. The improvement of the energy mix in Kenya is expected to avoid close to 5 million tonnes of CO 2 emission. The project is expected to achieve significant development impacts: In Ethiopia it will contribute the implementation of the country s Growth and Transformation Plan, whereby Ethiopia will tap in its vast RE potential for domestic consumption and to generate revenues in export of surplus clean energy. In Kenya alone, the additional power injected into the national grid will enable the supply of electricity to an additional 870,000 households by 2018, and a cumulative total of 1,400,000 additional households by 2022 (of which 18% will be located in rural areas). Businesses and industries in Kenya will also benefit, with around 3,100 GWh of additional energy by 2018, increasing to around 5,100 GWh by Implementation of the pillars of the CCAP

18 8 Progress report on the implementation of the Climate Change Action Plan Promoting sustainable transport Recognising the critical role of sustainable transport, particularly in the road sector, to achieving the CCAP s LCD pillar, the Bank is implementing projects to strengthen the transport network, improve accessibility in rural and urban areas, and reduce fuel consumption and GHG emissions. These projects cut across both the public and private sectors and include road construction, road maintenance, bridge construction and rail transport. Many of them are transnational (connecting two or more countries), supporting regional development and integration between RMCs. Sustainable transport infrastructure investments under the CCAP not only promote LCD development objectives through GHG emissions reduction, but also support building the infrastructure s resilience to the impacts of climate change and related extreme events and promote efficiency through reduction in per capita energy consumption. For example, the Rift Valley Railway project aims to rehabilitate, operate and maintain a regional railway (Kenya and Uganda) concession to transport both freight and passengers. Strengthening sustainable land use and forestry management Through the CCAP, the Bank recognises that Africa has significant mitigation potential associated with the Reducing Emissions from Deforestation and Forest Degradation (REDD+) mechanism in the forestry sector. The Bank has demonstrated its interest in supporting its RMCs in taking advantage of the opportunities to implement a REDD+ mechanism. As one source of support, the Bank-hosted CBFF supports sustainable forestry management and the development of (supra) national strategies or action plans, policies and measures. The analysis for this report included CBFF projects covering different aspects of sustainable land use systems and forestry management, including capacity-building initiatives, forest monitoring and inventory systems, and REDD+ implementation pilot projects. These projects seek to contribute to reducing GHG emissions while achieving poverty reduction, economic development and biodiversity conservation, all of which are captured under the LCD pillar. However, it is evident that these projects could also contribute to enhancing the adaptive capacity of the forest-dependent communities and their local economies to the impacts of climate variability and change. The forestry projects analysed are based in the Central Africa region because of the institutional arrangements related to the CBFF. ONEC is also supporting REDD+ and is exploring opportunities for REDD+ projects under other financial arrangements such as the Global Environmental Facility (GEF) and the Forest Investment Program of the Climate Investment Funds (CIFs). In addition, forestry management is often integrated in many agricultural projects that aim to enhance food security and alleviate poverty. Supporting nationally appropriate mitigation actions Since 2010 the Bank has actively engaged with RMCs on the development of their Nationally Appropriate Mitigation Actions (NAMAs). It has assisted nine RMCs in developing NAMA frameworks that have been submitted to the UNFCCC registry. For instance, Ethiopia, with its Climate Resilient Green Economy Strategy in place, has received support for the development of a NAMA in the transport sector ( Interurban Electric Rail NAMA ); and Gambia has developed a NAMA proposal in the agriculture sector, Mitigating Greenhouse Gas Emissions and Concentrations in the Atmosphere through the Strengthening and Promotion of an Integrated Crop-Livestock System in The Gambia. In the near future, the Bank also plans to assist other countries, including Mauritius (energy sector) and Uganda (agriculture sector). Climate Financing Platform To enhance Africa s access to climate finance, a Financing Platform was considered to be one of the key pillars of the CCAP. The Bank s Climate Finance Platform comprises a number of resources that are either hosted by the Bank or are global facilities for which the Bank is an implementing agency. The platform also seeks to benefit from numerous opportunities offered through public-private partnerships. Following the Joint MDB Methodology to track climate finance, the Bank has channeled about UA 2.29 billion in climate change financing both from its own

19 9 resources and drawing on the instruments from the Climate Finance Platform across a range of sectors. Global climate finance instruments and Bank-hosted financial initiatives The Bank is an implementing entity for such global facilities as the CIF and the GEF, which have cofinanced many of the Bank projects. Prominent of these global facilities is CIF, which comprises the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF). Annex 2 provides the details of the objectives and the amount to be channeled by the Bank. Various RMCs are part of these programs and benefit from CIF funds to complement ADF/ADB funding. Through its partnership with the USD 7.6 billion CIF, the Bank is committed to channeling USD 1 billion of CIF resources to countries in Africa. Since 2011, the Bank has approved a total of USD 420 million in CIF financing. These resources are currently being used to finance Bank-approved projects in five countries: Kenya, Mozambique, Morocco, South Africa and Niger. The Bank is also developing a pipeline of projects related to CIF Investment Plans in 12 other African countries. Projects with GEF commitments include the Mano River Union regional project to strengthen conservation efforts in a unique biodiversity hotspot that has shrunk to 15% of its original size, and a Public-Private Partnership Platform for Renewable Energy that will promote scaling up renewable energy through non-grant co-financing and take advantage of synergies with related Bank instruments. In addition, the Adaptation Board has accredited the AfDB as a Multilateral Implementing Entity (MIE) for the Adaptation Fund. The next steps are for the Bank to support African countries access to and management of resources from the Adaptation Fund. Annex 2 summarizes the objectives of these programmes and the amounts channelled through the Bank. The Bank also hosts and manages a number of funds that contribute partially or entirely towards mitigating and/or adapting to climate change: the African Water Facility, the Climate for Development in Africa Special Fund, the Congo Basin Forest Fund, the Rural Water Supply and Sanitation Initiative Trust Fund and the Sustainable Energy Fund for Africa. These funds finance projects across the water, energy, agriculture and forestry sectors. (The objectives of these funds and the amounts pledged by donors are provided in Annex 3.) The combination of the accessible global facilities and the Bank-managed funds has supported many projects under the CCAP. As one of the largest fast-tracked climate financing instruments in the world, CIFs as Figure 4 shows, have provided more resources than other instruments, and this largely through the energy projects currently being supported. Figure 4 Distribution of climate financial instruments and sources Others 5% CIF 77% GEF 1% CBFF 13% AWF 1% RWSSI 3% Green Facility for Africa The Bank recognises the challenges RMCs face in accessing climate finance from the myriad of bilateral and multilateral funds and initiatives available. In response to a request by African leaders that some of the resources pledged under the Copenhagen Accord and the Cancun Agreements be allocated to Africa through a fund to be managed by the Bank, the Bank led the development of the Africa Green Fund. Work on the fund began in , with extensive consultations (with RMCs, donors, civil society) and several iterations of the fund document. In November 2011, the document was presented to the Board, which recommended changes to better reflect the needs of RMCs and to fine-tune the governance structure. Taking into consideration the ongoing discourse on the global development agenda particularly following the Rio+20 Conference, where member states agreed to begin developing a set of Sustainable Development Goals (SDGs), building on the Millennium Development Goals (MDGs) and converging with the post-2015 development Implementation of the pillars of the CCAP

20 10 Progress report on the implementation of the Climate Change Action Plan agenda in mid-2012 the Bank rebranded the Africa Green Fund as the Green Facility for Africa. The Bank is still working to design a facility that will enhance RMCs access to climate finance and will include overarching support for green growth in the context of poverty eradication. Cross-cutting issues A number of issues policy and institutional reform, knowledge generation and capacity development, partnership and international cooperation, and communication and outreach cut across the three pillars of the CCAP. Actions in these areas aim to encourage, enable and support development of adaptive capacity, emission reductions, and innovative financing activities and initiatives. Although the types of activities considered in this category are not readily quantifiable (e.g., link with GHG emissions), when successfully implemented they enhance the benefits and outcomes for each of the pillars. (These areas are described below, and Annex 4 lists the specific activities in each area.) Policy and institutional reforms Policy and institutional reforms are essential for providing clear strategic direction and legitimacy. Although the Bank had implemented various activities to address Africa s climate-changerelated challenges since 2007, the Board s approval of the CCAP in October 2012 set the stage for more focused implementation of projects and programmes in line with the three pillars, providing confidence and clarity on the Bank s commitment to the climate change agenda. The Monitoring and Evaluation (M&E) Framework for the CCAP has been developed pending harmonisation with the proposed new results measurement framework in Though the CCAP is a recent feature of the institutional landscape, the Bank s Medium Term Strategy ( ) committed to mainstreaming climate change in all Bank operations; thus all sector strategies and policies developed during that period mainstreamed climate change concerns. Examples include: the Urban Development Strategy (2010) and the Energy Policy (2012). Furthermore, the Clean Energy Investment Framework of 2009 and the Climate Risk Management and Adaptation Strategy of 2008 provided strategic guidance on the Bank s response to Africa s climate change challenges. The institutional fine-tuning exercise of 2010 that led to the creation of the Energy, Environment and Climate Change Department (ONEC), expansion of the mandate of the Compliance and Safeguards Division (ORQR.3), and establishment of the CCCC in May 2011 provided the momentum to scale up Bank-wide work on climate change and improved the exchange of information on activities implemented across the sectors. More recently, the expansion of the CCCC s mandate to include green growth will allow for building on the achievements of the climate-change-related work. These changes have coincided with an increase in the number of staff designated as climate change experts across the Bank, with many more officers working on climate related issues within the remit of their sectors. Participation in the CIFs has led to development of new operational processes which will be a platform to build upon as the global climate change architecture evolves (e.g. Global Climate Fund). This progress particularly enhances the Bank readiness to take on more responsibility as an implementing entity of the various climate funds and initiatives. With regards to influencing reform at RMC level, the Bank is increasingly engaging with countries on transforming key sectors towards more sustainable pathways. For example, some initial advice has been provided to Kenya and South Africa on greening their transport sector master plans. In addition, early engagement with countries on green growth has been at strategic level and in this regards, has focused on encouraging the creation of enabling policy environments for mainstreaming green growth. Furthermore, the engagement processes facilitated by the CIFs have contributed to enabling the 15 pilot countries learn to align their institutions enabling more effective collaboration across sectors, and also between the government and multilateral and bilateral partners. In addition, as they develop investment plans, countries are learning about climate smart technologies, policies and processes that can reshape their future. On gender and climate change, the Bank s approach to the gender dimensions of climate

21 11 change are not yet explicitly reflected in any Bank policy document (e.g., Gender Policy, 2001). However, the fact that all Bank interventions are people-centred ensures that gender is mainstreamed in all operations addressing climate change challenges. For example, men and women are given equal access to any resources provided to respond to the negative effects of climate change. Knowledge generation and capacity development To design and implement effective action to address Africa s changing climate, the Bank needs a solid foundation in understanding the science and policy of climate change and other environmental issues with regards to implications for sustainable development in Africa. The Bank uses results from regional and international research to produce scientific and technical reports that help inform decisionmaking processes in Africa. In this regard, it has produced a number of publications to contribute to the body of knowledge on issues of relevance to Africa, seen through an African lens. For example, Getting Africa Ready for the Green Climate Fund highlights the disparity between actual and required flows of climate finance to the continent, and makes recommendations for the Green Climate Fund Board, African countries and the Bank aiming to increase the likelihood that RMCs will be able to access significant financing from the GCF through direct access. The Africa Ecological Footprint Report tackling issues broader than climate change and draws attention to the precarious reality of Africa s dwindling bio-capacity. Its findings support a transition to green growth in Africa i.e. growth that promotes efficient use of natural resources, minimises waste and pollution, and facilitates resilient livelihoods, as articulated in the Green Growth Framework that the Bank is now developing. A human resource base that is aware of the impacts of climate change and familiar with climate financing eligibility requirements is more strongly positioned to explore and attract financing opportunities from various sources. For this reason, several Bank departments have facilitated training both internally and for RMCs. With regards to RMCs, the climate change- related awareness created by the Bank in is expected to influence the policy decisions and institutional framework necessary to address climate change challenges at national levels. Approximately 350 experts and officials from Africa s five sub-regions have participated in training on Mainstreaming Climate Change and Environmental and Social Safeguards in Bank Operations. In addition, to help improve RMCs access to climate finance opportunities, through the Africa Carbon Support Programme, the Bank facilitated the training of designated National Authorities on the Clean Development Mechanism. The programme used the Ethiopia Kenya Electricity Interconnection Project as a case study to develop an innovative methodology that will allow the project and similar interconnections to benefit from carbon finance. Bank staff members have also been sensitised on the opportunities for co-financing from funds managed by the GEF and others. And as the global development agenda evolves to explicitly focus on sustainability, the Bank is strengthening its internal capacity to operationalize green growth. A significant amount of capacity building also takes place at project level. The Bank has developed tools to assess projects and provide information on their climate risks. The CSS is a suite of four components or tools: a risk screening tool, which helps categorise projects in terms of their vulnerability to climate risks; the Adaptation Review and Evaluation Procedure tool, which helps integrate adaptive measures into project design; a component that involves the development of country adaptation fact sheets, which provide up-to-date information on country profiles and indicators that can be integrated into CSPs to facilitate informed dialogue; and a knowledge base component, which provides information on climate projections to support the CSS. Tracking of financial resources allocated to mitigation and adaptation activities is essential for decision making. It builds trust and promotes accountability with regard to climate finance commitments. It also facilitates monitoring of trends and progress in climate-related investments. In this regards, the Bank led efforts on tracking adaptation finance, while the Inter-American Development Bank coordinated activities on the mitigation side under the Joint MDB Initiative on Tracking Climate Finance. The result is a comprehensive set of methodologies that will help inform decision makers on allocating limited resources wisely. Implementation of the pillars of the CCAP

22 12 Progress report on the implementation of the Climate Change Action Plan Partnership and international cooperation Partnerships are the tools for leveraging the Bank s influence and reach. Implementation of climate-change-related activities has led to opportunities to strengthen working relationships with various United Nations Agencies (UNDP, UNEP, UNECA), African political entity (African Union), international nongovernmental organisations (WWF, OXFAM), think tanks and consultancies (Vivid Economics, Ecofys, GCAP, IIED), academia (University of East Anglia and University of Cambridge) and multilateral development institutions (World Bank Group, EBRD). The Bank has pledged to invest USD1 billion per year until 2030 under the UN-led partnership Sustainable Energy for All, visibly reinforcing its commitment to transform Africa s energy systems and levels of access. The Bank has also strengthened its partnership with other multilateral development banks, jointly issuing a statement of intent to invest USD 175 billion over the next decade in sustainable transport. Furthermore, contributing to the implementation of the CIFs has demonstrated the Bank s capacity to manage external funds. Whereas directly working with community groups and local nongovernmental organisations on REDD+, the CBFF validates the Bank s willingness to work with and support civil society organisations in tackling development challenges. The Bank continues to regularly engage with African Ministers of Economy and Finance, and also African Ministers of Environment on climate change and development broadly. Recently, following a decision by the AU, AMCEN will lead the development of a number of Regional Flagship Programmes, among them the Africa Sustainable Energy Development Programme; which the Bank has been charged to co-facilitate with UNDP. As the Bank increasingly designs and operationalises a green growth objective under its Ten-Year Strategy, it needs to forge new partnerships with relevant organisations while strengthening existing ones for example, with the Global Green Growth Institute and the Institute for Global Environmental Strategies, and in the Partnership for Action on Green Economy particularly in its African expression (PAGE Africa). The Bank has also joined the Green Growth Knowledge Platform (GGKP) as a knowledge partner; this will strengthen opportunities for sharing information and experiences with relevant institutions. From this partnership and cooperation, the Bank is enriched with new ideas and approaches that it can use in its daily institutional activities, which enhance efficiency through drawing on the comparative advantages of others. Ultimately, through international cooperation the Bank increases its influence as a partner in development broadly and climate change specifically, in the eyes of a broad range of stakeholders. Communication and outreach Over the years, the Bank has actively supported Africa s agenda and interests in the UNFCCC negotiation process and in other arena (Box 4). From humble beginning at CoP 13, the Bank in collaboration with several UN agencies and backed by the political mandate of the African Union, established the Africa Pavilion at CoP 17 in The pavilion hosted over 100 side events and provided a platform for Africa to express its aspirations with regards to the post 2012 climate change agenda. The Bank also provides technical and financial support to the African Group of Negotiators, ensuring that the Group Box 4 Strengthening Africa s voice in global negotiations on climate change and development At the UNFCCC Seventeenth Conference of the Parties (CoP 17) in Durban (2011) and the United Nations Conference on Sustainable Development (or Rio+20) in Rio de Janeiro (2012), Africa spoke with a united voice when it mattered most. Through its collaboration with the AU, UNECA, UNEP and other liked minded institutions, the Bank has been supporting negotiators to the high-level United Nations (UN) processes. For example, ahead of CoP 17, the Bank and its partners supported the drafting of the African Ministerial Conference on Environment (AMCEN) backed Key messages for Durban; while for Rio+20, the African Consensus Statement for Rio+20 was prepared these documents were the basis from which Africa negotiated. It has to be acknowledged that this was no ordinary feat, given that the fifty four (54) countries on the continent are as diverse environmentally as they are politically (LDCs, LLDCs, SIDs, MICs; and South Africa which is aligned with other geo-political groupings including BASIC, IBSA, and BRICS). It is worth noting that the Africa Group of Negotiators (AGNs) is the only official negotiating coalition present within the UNFCCC.

23 13 is well informed and ready to defend Africa s interests in the negotiations and formulation of decisions and agreements. International events are consistently used as spring boards to draw attention to issues important for Africa. The ranges of themes for events that have been organised include: Africa s access to Convention Funds, prospects and challenges; Transboundary Natural Resources Management in a Changing Climate The Case of Shared Watersheds in Africa; Drawing the Line: The Costs of Adaptation and Development; Realizing the Potential: Making the Most of Climate Finance in Africa; Low Carbon Development and Energy Access for Africa; Financing sustainable development; The purpose of the regional and international events is to highlight and raise awareness on the challenges and emerging opportunities for Africa. For example, imparting the message that Africa is extremely vulnerable to climate change and requires that adequate and additional financial resources be allocated for adaptation. They also encourage countries to take action and accept responsibility where they are able. For example, the Africa Ecological Footprint report launched at the Annual Meetings in Arusha (2012) has been presented to a number countries as well as multilateral and bilateral partners to draw attention to the fact that action is required now to reverse the trend of unsustainable exploitation of the environment n Implementation of the pillars of the CCAP

24 14 Progress report on the implementation of the Climate Change Action Plan

25 15 Challenges and lessons learned Challenges Several challenges have been associated with the implementation of the CCAP, some related to the African context and some internal to the Bank s own institutional processes. These challenges must be addressed to improve the efficiency and sustainability of the Bank s efforts to address climate change in Africa and help RMCs to systematically and coherently move towards climate-resilience and LCD. The depth of uncertainty surrounding climate change in RMCs, especially the uncertainty related to the magnitude and frequency of climate risks, presents an enormous challenge to taking effective action in a continent where climate information is inadequate. The increase in capacity in the Bank over the years has not been matched by increased capacity in RMCs. Many RMCs have not been able to develop the set of technical and managerial skills required to develop climate change projects and access climate finance, and many do not have appropriate institutional and policy frameworks to guide national and local responses. The fact that the Bank s processing schedules are sometimes overly long and Lessons learned cumbersome is a challenge for developing projects in many RMCs. In addition, the Bank s processing cycles do not match with those of global climate facilities, reducing the amount of external resources the Bank is able to leverage. Despite the availability of different tools and methodologies for mainstreaming climate change into the Bank s policies and projects, Bank task managers are still struggling with project-level integration of climate risks. Furthermore, they still find it challenging to make climate-related assessments to generate information for project design and implementation. Increasing the supply of clean energy is critical to energy security and LCD in Africa. Higher-income countries are better positioned to benefit from the CIFs Clean Technology Fund. The challenge for the Bank is to help increase the access to and affordability of clean energy options for Africa s low-income countries, particularly the least-developed countries. Another challenge for the Bank is how to leverage the private sector participation in adaptation and mitigation projects in Africa either directly or through PPPs. Challenges and lessons learned Implementation of the Action Plan has generated a number of lessons that can provide important guidance for the remaining years of the Action Plan. Some of the lessons are related to the complexity of the climate challenge for Africa s development, and others to how the Bank has positioned itself to deliver on the Action Plan. The implementation of the CCAP requires cooperation among relevant departments and better understanding of the impacts of, vulnerability to, adaptation to, and mitigation of climate change, and of the need to incorporate climate change considerations in designing and developing

26 16 Progress report on the implementation of the Climate Change Action Plan projects especially large infrastructure projects that would be very costly to retrofit later. The lesson learned is the importance of creating an enabling environment for successful implementation of the CCAP to facilitate timely actions and the achievement of desired objectives. adopt a more climate-resilient and lowcarbon development path. The creation of CCCC as a coordinating mechanism has provided leadership and fostered collaboration across the different departments involved in the Action Plan. Capacity building, knowledge, technology, and finance are critical for improving adaptive capacity and sustaining LCD. Specialised and well-customised training programmes to augment staff capacity are crucial to ensure the continuity and sustainability of climate change interventions in a coherent, relevant and proper way. Timely knowledge products, policy advice, and capacity enhancement are essential elements for helping RMCs Participation in the CIFs has generated a wealth of knowledge which the Bank can draw upon as the global agenda on climate change evolves; Efficient harnessing of natural resources through regional cooperation and trade is weak and unevenly distributed on the continent. More coordination and regional integration are needed for addressing this gap n

27 17 Conclusion and recommendations Conclusion This report has assessed the extent of the implementation of the CCAP in its two years of operation. Through the Action Plan, the Bank has committed to support climate-resilient, lowcarbon development in Africa and improved access to climate finance. Under the Action Plan, many projects are being implemented across the continent in such sectors as energy, transport, agriculture, forests, and water. The Bank is advancing climate change adaptation and resilience, to a large degree, by pursuing sustainable development, in particular, sustainable agriculture, integrated water resource management, and climate risk reduction. These activities could provide immediate development benefits while increasing climate resilience. They are also expected to build up the physical and institutional basis for future adaptation to climate change. The Bank is indeed moving in the right direction in providing technical and financial assistance to support RMCs in responding to the impacts of climate change as they pursue development. It has developed the necessary capacity, knowledge, guidance and tools to raise awareness, provide context, and inform decision-making on climate interventions. Recommendations As the Bank continues implementing the CCAP, it can strengthen the effectiveness of its response to the climate challenge in a number of ways. This section sets out several recommendations. Increase RMCs access to climate finance and mobilise additional resources for example, by expediting the operationalisation of the Green Facility for Africa. Moreover, the While the Bank has made significant progress in the last two years, more still needs to be done to fully achieve the objectives of the Action Plan. The next step is to develop a plan for putting into action some of the recommendations of this report. This will pave the way for more sustainable intervention on climate-resilient and low-carbon development in Africa. For moving to LCD, the RMCs require additional resources. The Bank is aiming to facilitate this through increased resource mobilization and private investment flows. Moreover, the Bank will continue to deepen its leadership in helping the RMCs in order to meet their financing needs and gain access to new and existing sources of climate finance. The Bank will continue to work closely with international and regional partners, government, private sector, and civil society to expand its capacities in achieving its climate change objectives. Climate-resilience and low carbon development projects will perform best if stakeholders, especially at local level are closely involved in the entire project cycle, from identification through designing, implementation, monitoring, and evaluation. Bank should help mobilise and channel public concessional funds to its RMCs, facilitating the increased flow of private capital into climateresilient and low-carbon investments. Adding to the CSS a mechanism for calculating the extra cost of adaptation and climate-proofing projects will help address the identified needs and improve access to climate finance in future projects. Conclusion and recommendations

28 18 Progress report on the implementation of the Climate Change Action Plan Provide technical leadership on new and innovative financing sources for climate change adaptation and mitigation for example, by helping put in place a mechanism for mobilising domestic resources from its RMCs (as in the case of RWSSI) or by supporting RMCs access to carbon markets. In addition, the Bank has offered its leadership to improve institutional coordination on climate finance tracking through its partnership with the other multilateral development banks as part of its CIF engagement. Continue to foster partnerships and work closely with international and bilateral partners, government, private sector, and civil society to expand the Bank s capacities and outreach in achieving its climate change objectives. Moreover, the Bank should strengthen the support by the initiatives it hosts, particularly with the operationalisation of the CDSF and the expected submissions of proposals from RMCs. Build on ongoing knowledge work. For example, a study on the Cost of Adaptation to Climate Change in Africa and a report on Getting Africa Ready for GCF highlighted many methodological issues, discussed the data and capacity needs involved in assessing the costs of adaptation, and provided useful recommendations to improve African countries access to climate finance. Progress with the development and implementation of the M&E framework, including the selection of indicators and integration within the Bank s Results-Based Logical Framework. An M&E framework has been developed, and a training programme will help task managers track the implementation of the CCAP. A database is planned that will contain up-to-date information on the status of each of the projects in the CCAP. Still, further development of the framework is important for tracking, measuring, and reporting the results of climate-change related interventions and progress in implementing the CCAP. In addition to all the above, the following actions would facilitate better implementation of the CCAP: Intensify the efforts of regional and country offices to promote outcomes achievement related to climate change adaptation and LCD. Ensure better communication and information exchange between CCCC departments and Focal Points for reporting. Support the timely implementation of CCAP s streamlined projects. Facilitate the use of the Guidance Document on Mainstreaming Climate Change in CSPs and RISPs to ensure integration of climate change concerns in all Bank strategy papers. Increase staff participation in training programmes on designing climate change projects and on managing, monitoring and evaluating results. Explore how data, information and technical knowledge extracted from projects implementation can be made more accessible for use at all levels, and especially in decision-making. Provide additional resources for the formation and strengthening of partnerships to improve implementation and put the identified recommendations into action. Train staff on how to use the climate finance tracking methodology, especially for its application in capturing: (i) multisector projects with both adaptation and mitigation benefits; (ii) projects with different types of financial instruments; and (iii) disaggregating finance by project components and sub-components. Although it is recognised that deepening regional trade and integration would necessarily have a positive impact on the climate responsiveness of countries, particularly resource poor countries, clear methodologies and models and sufficient knowledge on the issue of regional integration and climate need to be developed. Proactive provision of advisory services to RMC on how to develop an enabling environment to mainstream climate change and green growth concerns n

29 Annexes 19